The United Arab Emirates is among the first Arab nations to openly embrace gambling. The country is gradually implementing its plans to become a global gambling destination. A federal regulatory body was established in 2023, with the first national lottery launching the very next year. Licences have already been issued to several leading gambling operators, and more are in the pipeline.
The UAE’s Evolving Gambling Landscape at a Glance
- The UAE’s gambling regulatory body, the General Commercial Gaming Regulatory Authority (GCGRA), was established in 2023. CEO Kevin Mullally and Chairman Jim Murren are responsible for building the legal framework.
- The first state-run lottery operation, The UAE Lottery, launched in November 2024. It’s a perfect test of the country’s legal infrastructure and enforcement procedures, which could apply to other forms of gambling in the future.
- The UAE’s gambling sector could potentially contribute 1.6% to its annual GDP. Experts predict that the industry could generate between $3 billion and $6.6 billion for the economy by the end of 2025.
Present State of the UAE’s Gambling Sector
The UAE had maintained a strict stance on gambling for decades. That changed in 2023 with the formation of the General Commercial Gaming Regulatory Authority (GCGRA). The strategy to promote gambling is part of the nation’s wider plan to establish itself as a premium tourist destination. From online gambling platforms to casinos in luxury hotels, commercial gambling is growing exponentially. The UAE is investing in the new frontier to fortify its financial future.
While the domestic casino scene in the UAE is in its early stages, several regions, including Ras Al Khaimah, are leading the change. The Wynn Al Marjan Island, which is expected to open in 2027, will be the UAE’s first legal casino. Despite the lack of operational venues, the growing interest in the iGaming industry and legislative changes supporting the public sentiment signal a shift in traditional policies.
Although the first licensing window has closed, additional gambling licences are expected to roll out soon. Casino operators, software developers, and investors are eagerly awaiting the opportunity to enter the market. The demand for turnkey casino solutions is increasing as operators are expecting greater demand from consumers across the seven emirates.
Gambling Sector Expected to Drive the UAE’s Economic Growth in the Future
At the helm of the UAE’s General Commercial Gaming Regulatory Authority are two experienced US executives. CEO Kevin Mullally served as the VP of Government Relations & General Counsel at Gaming Laboratories International for a decade. Chairman Jim Murren served as Chairman and CEO of MGM Resorts International between 2008 and 2020. They are now tasked with building the UAE’s legal framework for gambling, and attracting entrepreneurs looking to launch an online casino business catering to locals as well as companies interested in operating land-based establishments.
According to experts, the UAE’s gambling industry has the potential to account for 1.6% of the national GDP. The sector has the potential to generate between $3 billion and $6.6 billion annually by the end of 2025. Tourism, by far, has the greatest economic potential, accounting for 9% of the UAE’s GDP. Combining casinos with tourism could further fuel its economic growth.
The UAE currently handles over 1,750 cruise ships. On-board casinos remain closed while docked in domestic waters. However, a regulatory overhaul could soon abolish this policy, bring economic reform, and boost the hospitality sector. Stable tax revenue would also fund public services, facilitate community development, and support revenue diversification.
Since the country’s tax regime is under development, a specific tax structure has yet to be announced. Experts expect a standard tax rate of 10-12% on Gross Gaming Revenue, comparable to global gambling hubs. Since the UAE’s gambling industry is relatively young, formal tax guidance is expected in the coming days. However, until the new tax regime is finalised, a standard 5% VAT may apply to gaming services.